Veterans and their spouses are contacting us by the thousands thanks to our new Hero.Loan program, the fastest-selling loan program in the country, but they still have a lot of questions about how to get a VA Loan, what the process is, how much VA Loan they can get, who is eligible for a VA Loan, and what are the VA Loan requirements.
This is a question that we can answer. When you apply for a VA Loan, your financial records are put through our system to determine how much money you can borrow with a VA Loan. It’s a complicated process, but comes down to a few common factors:
How good is your credit?
How much money do you make?
How much do you have in savings?
How much debt do you currently have?
If you can solve those, and give us positive answers on these questions, you can afford a lot more home than you may think. While the VA Loan doesn’t put a hard cap on the amount that you can borrow, it limits the VA’s liability by capping the guaranty amount to $453,100 in 2018 for most loans.
Each county has their own limit, but they all generally fall into this same range.
The question is: How much will you have to come up with? It depends on two things, the county loan limit and the lower of the sales price and the appraised value. Qualified borrowers will be on the hook for a quarter of the difference.
Here’s an example. If you have full VA loan entitlement and your county uses the standard $453,100. You want to buy a home that costs $553,100. With a $100,000 difference between the two, you would need to come up with $25,000, or 25% of the difference, for a down payment.
This changes, of course, if you have already used part of your entitlement, and it can’t be restored. In that case, you will have access to far less capital, and still need to come up with 25% of the difference between your available balance and the home’s price.
There are two categories for VA Service requirements for the VA Loan: wartime and peacetime. You only have to satisfy one of these types in order to be eligible for a VA Loan.
Service requirements require veterans who served during wartime must have been on active duty for at least 90 consecutive days. For peacetime members, you must have served a minimum of 181 days. Veterans of the National Guard or Reserves must have served for at least six years unless otherwise eligible.
Spouses of service members who died in the line of duty, or as the result of a service related disability, may also be eligible.
Our VA Loan Specialists can help you determine if you are eligible for a VA Loan.
VA Loan requirements aside from the service time include a VA Loan Certificate of Eligibility, or COE. Luckily, you don’t have to have this in-hand when you apply. Our VA Loan Specialists will help you get your COE as part of the loan process, and will make sure that you qualify for the loan and have all of your paperwork done properly and quickly.
The Hero.Loan team has spent the last year and a half developing a system to take care of our veterans, and get your loan closed in as few as 14 days. We are a direct-endorsed VA Lender, meaning that our turnaround time is that much faster than other companies. We also underwrite all of our VA Loans in-house, saving you upfront costs and fees, including the appraisal. We never charge you any out-of-pocket fees, and pay for your appraisal for you.
Our veterans and active military deserve the best loan, and the VA Loan is the loan that they have earned. If you don’t have a VA Loan and are eligible, what are you waiting for? Apply online today at Hero.Loan for your VA Loan.